A MAC requires more overhead for the investor, since he must take care of himself to his account and tax matters. In both cases, base of your trading is the AlphAlgo strategy. Can you please explain our readers what you must imagine including? What is the basic idea, which is behind this? Martin Rothe: The basic idea of the AlphAlgo strategy is logically simple: If there are trends with a period in the markets, profit can be achieved. The AlphAlgo strategy includes various concepts to improve the chance for a profit. Includes first the identification of trend in a wide variety of currency, equity index, interest and commodity markets. Somewhere, always a trend can be made, but no positions are entered into in case of doubt. In addition come not only rising but also falling trends into consideration. The decision for a transaction – and thus the actual essence of the AlphAlgo strategy is addressed acquires a sophisticated self-developed computer program.
The advantages are obvious: trends are consistently exploited until the actual end, so not too soon took the gains and losses are recognized at an early stage also consistently. This rigorous and unconditional approach that makes sense, because human activity causes mostly the opposite: winnings will be quickly secured, mostly too early and losses are often endured until the bitter end, or eternal time. All this avoids computer-controlled action. But a more important question is objectively solved: how much risk can be addressed with a new position without compromising the overall portfolio. Bearing in mind the strength of the trend and the volatility of a market in connection with the remaining positions in the portfolio and the liquidity is very clear that this is no longer to do without a computer. Based on the strength of the fully automated trading program AlphAlgo. Implemented the decisions then with futures, which traded on stock exchanges, have always an assessment, and cover the most varied markets.